Have you ever wondered why one car accident claimant receives a six-figure settlement while another walks away with peanuts for the same injury?
Medical bills and property damage are part of it, of course.
But the single most important factor?
The lifestyle changes that result from a car accident.
Insurance adjusters and lawyers look at how an accident has impacted a claimant’s quality of life, and this factor can make or break a settlement value. Let’s get into more detail.
Table of Contents:
- How Lifestyle Affects Settlement Value
- The Role of Quality of Life in Claims
- Key Lifestyle Factors Insurance Companies Consider
- How to Document Your Lifestyle Changes
- Making the Connection
How Lifestyle Affects Settlement Value?
Car accident settlements aren’t simply based on the facts of the crash itself.
The value in question is all about the aftermath. Insurance companies don’t ask, “Did you break your leg in an accident?” Instead, they ask, “How has this accident changed your life?”
As one car accident attorney Oklahoma professional explains, documenting your lifestyle after a crash is one of the most important steps in building a car accident case.
Why?
Because two people with the same injury can receive dramatically different settlement offers. The difference comes down to how the accident has affected their day-to-day lifestyles.
It’s as simple as that.
A sedentary office worker who broke a leg will recover much differently than a professional soccer player with the same injury. The stakes are much higher for the soccer player whose career and quality of life are both on the line.
Insurance companies are aware of this fact, and it is factored into every settlement.
The Role of Quality of Life in Claims
Quality of life is a legal term with real significance in car accident claims.
It encompasses the totality of the ways that an injury has impacted a claimant’s enjoyment of life. Included in quality of life are:
- Hobbies
- Sports
- Family time
- Daily activities
- Relationships
- Working in a chosen career field
Here’s the thing that most people don’t realize…
These so-called “non-economic damages” often form the lion’s share of settlement value, and they can even eclipse medical bills in many cases.
According to ConsumerShield data, the national average car accident settlement is approximately $30,416. While settlements can include much higher amounts when there are significant lifestyle changes at stake.
Proving the accident’s specific impacts on your quality of life is key.
Courts and insurance companies have a standard method for assessing these factors. They use something called the “multiplier method” to quantify non-economic damages.
The process goes like this:
- First, they look at your economic damages. These include medical bills and lost wages from the accident.
- Next, they assign a multiplier between 1.5 and 5, depending on the severity of the lifestyle impact.
- Finally, they apply the multiplier to the economic damages to reach a settlement number.
The more an injury has reduced a person’s quality of life, the higher the multiplier.
Key Lifestyle Factors Insurance Companies Consider
Insurance adjusters consider very specific lifestyle factors when calculating a claim’s value.
Physical Activities
Insurance adjusters are interested in the kinds of physical activities a claimant did before the accident.
Were you active and athletic? Did you play sports? Did you swim, run, hike, and work out regularly?
If an injury leaves you unable to do the activities you love, it can dramatically increase the value of your claim. This is especially true for people whose careers are tied to athleticism or fitness.
Career and Work
The kind of work that an accident victim can do matters more than you think.
A surgeon who loses fine motor skills in a hand has a much larger claim than an administrative assistant with the same injury. This is because lifestyle impacts include a loss of earning potential.
Daily Living
Daily activities, or ADLs, are things like cooking, cleaning, grooming, bathing, and other self-care tasks.
Insurance companies take a close interest in whether a claimant can still do the activities of daily living without assistance. When injuries prevent a person from taking care of themselves, the settlement value goes up.
Social and Emotional
Accidents can have major mental health impacts in the form of anxiety, depression, and PTSD.
Social withdrawal, damaged relationships, and an inability to enjoy life are all relevant factors when it comes to lifestyle in a car accident claim. If the crash caused you to avoid social situations you once loved or suffer emotional damage, it counts as damage.
According to the U.S. Department of Justice, approximately 95% of all personal injury cases settle before they go to trial. A settlement’s going to be based on documentation rather than jury decisions in almost every case.
Pre-Accident vs Post-Accident
The strongest cases are the ones where the contrast is clearest.
A marathon runner who can no longer run due to a car accident injury has clear evidence of the changes in quality of life. The more extreme the pre- and post-accident contrast, the more serious the impact.
How to Document Your Lifestyle Changes?
Documentation is the name of the game when it comes to car accident settlements.
Lifestyle factors may be legitimate ways to increase the value of a settlement. However, without proof, they’re just words. With it, they become dollars.
Daily Journal
Start a journal documenting your life post-accident. Make sure you document:
- The activities you are no longer able to do.
- Pain levels during the day.
- Emotional challenges.
- Tasks that have become difficult or require assistance.
Witness Statements
Friends and family members can write statements about the person you were before the accident.
The “you” who was healthy and active, they can say. Compare it to the “you” that they see now after the accident.
Professional Assessments
Medical records are important, of course. However, expert assessments can help as well. Ask a doctor to write about your permanent limitations or a therapist to provide documentation of post-accident anxiety.
Photos and Videos
Visual evidence can be very compelling. Take pictures of things that you used to enjoy before the accident and compare to your current state. Photos of you playing sports, for example.
Financial Records
Track and document any costs associated with lifestyle changes, including gym memberships you can no longer use or hobbies that you had to give up.
Making the Connection
Lifestyle impact is a critical factor in car accident settlements.
Insurance companies base settlement offers on the degree to which a person’s lifestyle has changed. The more comprehensive the proof of those changes, the more the settlement amount will go up.
This is why it’s so important to have an experienced car accident attorney on your side.
They have the experience and knowledge to know what to document and how to present a case so that all the impacts on a client’s life are fairly valued.
Final Thoughts
Car accident settlements are about the damage and repair of one’s life.
When that repair is not possible, fair compensation for everything lost is the next best thing. A personal injury claim seeks to achieve both.
The impact of lifestyle factors on car accident settlements can be significant. Lifestyle factors can and do increase settlement amounts.
However, only when they are properly documented and presented by a skilled Oklahoma car accident attorney.
Disclaimer: This article does not constitute legal advice. You should contact an attorney for advice on your specific situation.
The key takeaways:
- Your pre-accident lifestyle is the baseline for settlement value.
- Quality of life (pain and suffering) damages can exceed medical costs.
- Documentation is key to supporting lifestyle change claims.
- Multiplier Method incentivizes severe lifestyle impacts.
- Professional legal help increases the chances of a better settlement.
Understanding the role of lifestyle in car accident settlements empowers you to seek fair compensation. Use it to your advantage, and you will build the strongest case possible for the settlement you deserve.
